Living Wage increase of 20c to €11.70 driven by rising housing costs

he Living Wage in Ireland has been increased to €11.70, a 20c increase for 2017.

The updated amount has been driven by changes in the cost of living here and changes in the taxation system. According to the Living Wage technical group, who set the research-based figure, the current housing crisis and associated rent levels has been the main driver for wage rate increasing this year.

The Living Wage for the Republic of Ireland was established in 2014, and is updated in July of each year. It is defined as a wage which makes a minimum acceptable standard of living possible. The Living Wage is distinct from the minimum wage which is set by the Government’s low pay commission and currently stands at €9.25. The 20c increase was calculated based on a number of drivers: food costs and health insurance costs, reduction in the Universal Social Charge decreased weekly minimum expenditure but rising housing costs outweighed these decreases.

The technical group found that weekly housing costs in Dublin increased by €15.92 and €12.57 in other cities across Ireland, while towns and rural areas saw an increase of between €6.14 and €6.64. The Living Wage technical group is made up of researchers and academics and is conducted by the Vincentian Partnership for Social Justice (VPSJ).